Can I get refinanced?

[Santi78342]

Hey guys,

Last year I had to get a car from a local dealer that deals soley with people with bad credit. The loan was for 12K at a 16.29% APR. I tried refinancing with my local CU that I bank with and have a CC with now that my scores are up about 50-70 points depending on with bureau. They denied me because of two collection accounts (1 paid [$150] and 1 unpaid [$259]) and because I would need about $10.8K to pay it off. They said another major factor was they only refinance if the loan amount is for <90% of the vehicles current value and mine is at 151%

Does anyone know of any one out there I would have good luck with? I'm not looking for the best rate, I'm just looking for someone who can give me <10% APR

Thanks in advance!

[Remember0]

Problem here is LTV. Collections hurt, but nobody is going to lend @ 151% even if you had a perfect FICO score.

What's the NADA Retail value of your car?

Is there any way you can bridge the gap between NADA retail and what you owe right now? If you can bring that much cash to the table, this loan can get done...Else it's hard. With a 642, you could even look at a short-term personal loan maybe? It'll probably be lower than 16.29% to be honest.

[Santi78342]

I don't know anything about NADA but I googled it and came up with the following:

Rough Trade-In: $3,375

Average Trade-In: $4,275

Clean Trade-In: $5,000

Clean Retail: $7,425

My CU said it would be lending 151% so I'm guessing it is valuing it at appx. $7,000

It's a 2005 Ford Escape Hybrid 4x4 with 118,000 miles

The amount I owe right now is around $10.8K and there's no way I can come up with $3K-$4K and I am unable to take out a short term loan. 

Am I stuck paying this ridiculous amount of money? 

I've been paying $359/month for the past year ($4,308) and there is still 36 months left on the term. That equates to another $13K. Holy F*?!

[Remember0]

I'm sorry, buddy.

Unless you can bring the cash or pay down the loan so that NADA is closer to the principal, the car isn't going to get refi'ed imo. Maybe try sending extra payments if you can to the bank (make sure to have it applied as an additional principal payment, not just part of next month's loan). That will reduce the interest you pay and even out nada + principal quicker.

Good news is depreciation at this point slows down for cars. So your payments WILL catch up to NADA. But it maybe 12-24 months if you can't send extra PRINCIPAL payments.

[Santi78342]

I will try to send as much as I can to catch up to NADA and hopefully get it to where I can refinance sooner rather than later. Thank you so much for your input Remember0

[Remember0]

Make sure they put it towards principal and don't just apply it to next month's payment. If they apply to principal as soon as they get it, it'll help lower the amount of interest you're paying too on top of the payment and allows you to paydown quicker!

EDIT: In the meantime, maybe also work on getting some baddies off? What's going on with your credit, exactly?

[Santi78342]

I am actively trying to GW my credit union to remove the 3 30-day lates, and the one collection agency I paid to have them remove it from my credit report. I am awaiting a response from the last collection agency on a PFD agreement i sent on Monday. 

BofA Cash Rewards - 2K CL

Amex BCE AU - 2K CL

UWCU CC - $1K CL (1 30-day late in 2010)

UWCU LoC - $1K (2 30-day lates in 2012)

Capital 1 QSO - $300 CL

Auto Loan - 12K 

Oldest account - 5 years

AAoA - 3 years 

1 Paid Collection from 2011 ($150)

1 Unpaid Collection from 2013 ($259)

23 years old with a $51K/yr income

Scores below 

EDIT: I should also note that when I got the car a year ago, my scores were around 570 due to around 98% utilization and 3 unpaid collections. I paid down my balances to get to 2% utilization, got one collection removed, and paid another earlier this year.

[Remember0]

You seem to know what you're doing, keep going! You're definitely on the right track!

Those collections wouldn't happen to be medical related by chance would they?

[Santi78342]

Thanks! I've definitely done a lot of reading on these forums! And yes, the one I paid was. I googled the HIPAA process but didn't really understand it and don't think it can be used for a paid collection? I know we really can't discuss it on these forums though so I gave up on it.

[Remember0]

No such thing as giving up lol! ........